Behavioral Finance is a line of study of Finance which has as its objective the review and the improvement of the modern economic and financial model through the addition of evidences about investor's irrationality. The article brings a review of the first international papers about the subject. It gives, as well, an account of the studies about the identification of these anomalies on the Brazilian stock market and a research about the major qualities and deficiencies of the Behavioral Finance model that make this study one of the most controversial subjects within the contemporary world of Finance.
Behavioral Finance; market overreaction; market anomalies; investor's overconfidence; investor's psychology